NOTHING is perhaps so strongly indicative of the progress that Japan has made as the record of her trade and commerce. I have no intention of inflicting on my readers a mass of figures, but I shall have to give a few in order to convey some idea as to the country’s material development of recent years. Japan, it must be recollected, is in her youth in respect of everything connected with commerce and industry. When the country was isolated it exported and imported practically nothing, and its productions were simply such as were necessary for the inhabitants, then far less numerous than at present. When the Revolution took place trade and commerce were still at a very low ebb, and the Japanese connected with trade was looked upon with more or less of contempt, the soldier’s and the politician’s being the only careers held much in esteem. For innumerable centuries the chief industry of Japan was agriculture, and even to-day more than half of the population is engaged thereon. Partly owing to religious influences, and partly from other causes, the mass of the people have been, and still are in effect, vegetarians.

The present trade of Japan is in startling contrast with that of her near neighbour China, which, with an area about twenty-three times greater, and a population nearly nine times as large, has actually a smaller volume of exports. All the statistics available in reference to Japan’s trade, commerce, and industries point to the enormous and annually increasing development of the country. Indeed, the trade has marvellously increased of recent years. Since 1890 the annual value of Japan’s exports has risen from £5,000,000 to £35,000,000, the imports from £8,000,000 to £44,000,000. That the imports will continue in similar progression, or indeed to anything like the same amount, I do not believe. Japan of recent years has imported machinery, largely from Europe and America, and used it as patterns to be copied or improved upon by her own workmen. Out of 25 cotton-mills, for example, in Osaka, the machinery for one had been imported from the United States. The rest the Japanese have made themselves from the imported pattern. There were also in Osaka recently 30 flour-mills ready for shipment to the wheat regions of Manchuria. One of these mills had been imported from America, while the remaining 29 have been constructed in Osaka at a cost for each of not more than one-fifth that paid for the imported mill.

Shortly after peace had been declared between Russia and Japan, the Marquis Ito is reported to have said to Mr. McKinley: “You need not be afraid that we will allow Japanese labourers to come to the United States. We need them at home. In a couple of months we will bring home a million men from Manchuria. We are going to teach them all how to manufacture everything in the world with the best labour-saving machinery to be found. Instead of sending you cheap labour we will sell you American goods cheaper than you can manufacture them yourselves.” The Japanese Government seems to some extent to be going in for a policy of State Socialism. The tobacco trade in the Empire is now entirely controlled by the Government. The Tobacco Law extinguished private tobacco dealers and makers, the Government took over whatever factories it deemed suitable for the purpose, built others, and now makes a profit of about £3,000,000 sterling annually, while the tobacco is said to be of a superior quality and the workmen better paid than was the case under private enterprise. How far Japan intends to go in the direction of State Socialism I am not in a position to say. Many modern Japanese statesmen are quite convinced of the fact that the private exploitation of industry is a great evil and one that ought to be put a stop to. On the other hand, there are Japanese statesmen who are firmly convinced that the State control of industries can only result in the destruction of individual initiative and genius, with the inevitable result of reducing everybody to a dead level of incompetence. In this matter Japan will have, as other nations have had, to work out her own salvation. In the process of experiment many mistakes will no doubt be made, but Japan starts with this advantage in respect of State Socialism, precisely as in regard to her Army and Navy—that her statesmen, her leading public men, her great thinkers, have no prejudices or preconceived ideas. All they desire is that the nation as a whole shall boldly advance on that path of progress by the lines which shall best serve to place the country in a commanding position among the Great Powers of the world, and at the same time to promote the happiness, comfort, and prosperity of the people.

The Japanese are great in imitation, but they are greater perhaps in their powers of adaptation. They have so far shown a peculiar faculty for fitting to Japanese requirements and conditions the machinery, science, industry, &c., necessary to their proper development. Japan is without doubt now keenly alive, marshalling all her industrial forces in the direction of seeking to become supreme in the trade and commerce of the Far East. The aim of Japanese statesmen is to make their country self-productive and self-sustaining. We may, I think, accordingly look forward to the time, not very far distant, when Japan will cease to import machinery and other foreign products for which there has hitherto been a brisk demand, when she will build her own warships and merchant steamers, as she now partially does, and generally be largely independent of those Western Powers of which she has heretofore been such a good customer.

At the present time the chief manufactures of the country are silk, cotton, cotton yarn, paper, glass, porcelain, and Japan ware, matches and bronzes, while shipbuilding has greatly developed of recent years. The principal imports are raw cotton, metals, wool, drugs, rails and machinery generally, as well as sugar and, strange to say, rice. Japan exports silk, cotton, tea, coal, camphor and, let me add, matches and curios. The trade in the latter has assumed considerable proportions, and I fear I must add that much of what is exported is made exclusively for the European market. According to the latest figures, the country’s annual exports amounted to about £35,000,000, and its imports to about £44,000,000. I venture to prophesy that these figures will ere long be largely inverted.

Silk is the most important item of Japan’s foreign trade. The rearing of silkworms has been assiduously undertaken from time immemorial, or “the ages eternal” according to some Japanese historians. Like so many other arts and industries of the country, silkworms are believed to have been introduced from China. For some time prior to the opening of Japan to European trade and influences the silk industry had rather languished owing to the enforcement of certain sumptuary laws confining the wearing of silk garments to a select class of the community, but so soon as Japan discarded her policy of isolation from the rest of the world the production of and demand for silk rapidly increased, and the trade in it has now assumed considerable dimensions. Strange to say, silk is still in Japan what linen was at one time in the North of Ireland—a by-industry of the farmer, a room in his house being kept as a rearing chamber for the silkworms, which are carefully looked after by his family. According to official returns, there are rather more than two and a half million families so engaged, and nearly half a million silk manufacturers. The largest part of the silk exported goes to the United States of America. Closely allied with the production of silk is the mulberry-tree, the leaves of which form the staple food of the silkworm. This plant is cultivated with great care throughout the country, and indeed there are many mulberry farms entirely devoted to the culture of the tree and the conservation of its leaves.

Rice, as I have elsewhere stated, forms the principal article of food of the Japanese people. Japan at present does not produce quite sufficient rice for the consumption of her population, and a large quantity has, accordingly, to be imported. The danger of this for an island country has been quite as often emphasised by Japanese statesmen as the similar danger in respect of the wheat supply of Great Britain has been by English economists. Many practical steps have been taken on the initiative of the Japanese Government in the direction of improving the cultivation of rice, the irrigation of the fields, &c. As time goes on no doubt the food of the people will become more varied. Indeed, there has been a movement in that direction, especially in the large towns. A nation which largely lives on one article of diet, the production of which is subject to the vicissitudes of good and bad harvests, is, it must be admitted, not in a satisfactory position in reference to the food of its people.

If rice is the national food, tea is emphatically the national beverage, despite the large consumption of sakÉ and the increasing consumption of the really excellent beer now brewed in Japan. Like most other things, the tea-shrub is said to have been imported into Japan from China. Almost since the opening of the country, the United States has been Japan’s best customer in respect of tea, and she has from time to time fallen into line with the requirements of the United States Government in regard to the quality of tea permitted to be imported into that country. For instance, when, in 1897, the United States Legislature passed a law forbidding the importation of tea of inferior quality and providing for the inspection of all imported tea by a fixed standard sample, the Tea Traders Association of Japan established tea inspection offices in Yokohama and other ports, and all the tea exported from the country was and still is passed through these offices. The tea is rigidly tested, and if it comes up to the required standard is shipped in bond to the United States. The quality of the tea is thus amply guaranteed, and it, accordingly, commands a high price in the American Continent. The value of the tea exported to the United States amounts to something like £1,200,000, and there are no signs of any falling off in the demand for it. Canada is also a good customer of Japan for the same article, but Great Britain and the other European countries at present take no Japanese tea. I do not know why this is the case as the tea is really excellent, and it has, as regards what is exported, the decided advantage of being inspected by experts and the quality guaranteed. The tea industry is undoubtedly one of great national importance, the total annual production amounting to about 65,000,000 pounds, the greater portion of which is, of course, consumed in the country.

I have already referred to the importance of Japanese arboriculture, and to the steps taken by the Japanese Government in reference to the administration of forests and the planting with trees of various parts of the country not suitable for agriculture. The State at the present time owns about 54,000,000 acres of forests, which are palpably a very great national asset. I may mention that the petroleum industry is growing in Japan. The quantity of petroleum in the country is believed to be very great, and every year new fields are being developed. The consumption of oil by the people is considerable, and it is hoped that ere long Japan will be able to produce all that she requires. The petroleum is somewhat crude, providing about 50 per cent. of burning oil.

Tobacco, as I have elsewhere remarked, is now a State monopoly, and forms a considerable item in the State revenue. The quality has much improved since the manufacture of it has ceased to be a private industry. The Japanese are inveterate smokers, and the intervention of the State in this matter, although it has been criticised by political economists in the country and out of it, and is undoubtedly open to criticism from some points of view, has, I think, been justified by results. The making of sugar from beetroot has been attempted in Japan, but the results have not been over-successful. The efforts in this direction are, however, being persisted in, and it is hoped that, especially in Formosa, the beet—sugar industry may develop in importance.

The manufacture of paper in Japan has long been an important national industry. Paper has been and still is used there for many purposes for which it has never been utilised in European countries. Originally it was largely made from rice, and the mulberry shrub has also been used for paper manufacture. The rise and development of a newspaper press in Japan and the impetus given to printing has, of course, largely increased the demand for paper. This is being met by the adaptation of other vegetable products for the purpose of making paper, and it seems quite certain that Japan will be totally independent of any importation of foreign paper to meet the great and greatly increasing demand for that article in the country.

Salt is, I may remark, a Government monopoly in Japan. No one except the Government, or some person licensed by the Government, is allowed to import salt from abroad, while no one can manufacture salt without Government permission. Salt made by salt manufacturers is purchased by the Government, which sells it at a fixed price. This particular monopoly has only recently been established, and the reason put forward for it is a desire to improve and develop the salt industry and at the same time to add to the national revenue. Whether a monopoly in what is a necessary of life is economically defensible is a question, to my mind, hardly open to argument. That the revenue of the country will benefit by the salt monopoly is unquestionable. As might have been expected, the opening up of Japan to Western influences has induced or produced, inter alia, some Western forms of political and social and, indeed, socialistic associations. The antagonism between capital and labour and the many vexed and intricate questions involved in the quarrel are already beginning to make themselves felt in Japan. It was, I suppose, inevitable. Labour is an important factor in an industrial nation like Japan, and there is already heard the cry—call it fact or fallacy as you choose—with which we are now so familiar in this country and on the Continent, that labour is the source of all wealth. Japan will no doubt, like other countries, sooner or later have to face a solution of the problems involved in these recurring disputes and this apparently deep-rooted antagonism between the possessors of wealth and the possessors of muscle. Already many associations have been established whose aim and object is to voice the sentiments of labour and assert its rights. Indeed, there is a newspaper, the Labour World, the champion of the rights of the Japanese workmen. So far the law in Japan does not regard with as tolerant an eye as is the case in this country labour demonstrations and the occasionally reckless oratory of labour champions. The police regulations forbid the working classes embarking in collective movements and demonstrating against their employers in the matter of wages and working hours. A suggestion of a strike of workmen is officially regarded with an unfriendly eye, and strikes themselves, picketing, and various other Western methods of coercing employers to come round to the views of the employed, would not at present be tolerated in Japan. No doubt these Western devices will assert themselves in time. The attempt to keep down the effective outcome of labour organisation in a country with an enormous labour population is not likely to be successful for long. Socialism is making great progress in Japan, and the State has, whether consciously or not, given it a certain amount of countenance by the steps it has taken in reference to the tobacco and salt industries, &c. The extent to which newspapers are now read in Japan—a matter I refer to more fully in another chapter—will undoubtedly tend to mould public opinion to such a degree that no Government could afford to resist it.

RICE PLANTING, PROVINCE OF HOKI
FROM A PRINT BY HIROSHIGE

The trade, commerce, and industries of Japan appear to me to be, on the whole, in a healthy and flourishing condition. In them, and of course in her industrious population, Japan possesses a magnificent asset. The country is rich in undeveloped resources of various kinds, the people are patriotic to a degree, and I feel sure that the additional burdens which the recent war with Russia has for the time entailed will be cheerfully borne. I am confident, moreover, that under the wise guidance of the Emperor and her present statesmen Japan will make successful efforts to liquidate her public debt, to relieve herself of her foreign liabilities, and generally to proceed untrammelled and unshackled on that path of progress and material development that, I believe, lies before her, and which will, I am sure, at no far-distant date place her securely and permanently in the position of one of the Great World Powers.